Have you often wondered, what should your marketing budget really be to get the results your company needs?
Typically, a company’s marketing budget should range between 4% and 8% of their company’s total revenue. A data-driven digital inbound marketing program should take a minimum of one-quarter of that budget.
Inbound Marketing Budget
If you are striving for more leads, then you need to bump up the budget for inbound marketing so you can help guide curious internet users straight to your website. Remember, the more leads generated from SEO, blogging, and social media platforms equals more potential sales!
A good starting point is to put aside at least 2% of your total annual revenue for an outcome-based digital inbound marketing program. 28% of marketers have reduced their advertising budget to fund more digital marketing.
The largest share of online spend goes toward search engine marketing (SEM) at 47%, or about 14% of a company’s total marketing budget. Content creation now claims the second largest share of digital marketing budgets, with 26% of all marketing dollars in the U.S. directed toward custom, branded content.
Mobile spend captures about 3% of digital marketing budgets, but is the fastest growing digital marketing channel.
A final key point to remember when planning your marketing budget: inbound marketing costs 62% less per lead than traditional marketing.